There is more and more diffusion about the world of digital currencies called cryptocurrencies, especially by the most popular Bitcoin. Therefore, it is not surprising that the number of people interested in buying them is growing every day. Today, most of them prefer to buy bitcoin with bank transfer.
Buy bitcoins through bank transfers – Advantages
Acquiring bitcoins through transfer is a simple and safe way, since its use is very widespread. This option offers more security because, unlike with credit or debit cards, you do not have to provide your bank details to make the payment. Another very different thing is that the platform where you want to buy them requires you to link your bank account. There you will have to decide what you want to do.
In any case, if you still do not feel safe, you could solve it by opening an account in your bank that is separate from your savings account. In this way you will have one that you will use solely and exclusively to buy bitcoins. So you will no longer have any excuse to enter the world of digital currencies.
Another very important advantage is that buying bitcoins with a bank transfer usually means paying less commissions on the platforms that offer these services. And it is logical that it is cheaper compared to payment by credit or debit card because it must be taken into account that the platform must assume higher bank charges and also, on certain occasions, these payments involve more risks for them.
Why shouldn’t you buy bitcoins with bank transfer? – Disadvantages
You should not buy bitcoins with a bank transfer if you are faced with a time when the price of bitcoin is really low and you think it could start to rise in value. I tell you this because this payment method usually takes at least one business day to complete and by the time the money has arrived to buy the bitcoins, its price will have risen.
Classification of transfer types to buy bitcoins
Bank transfers serve, as their name suggests, to transfer money between two bank accounts, that is, to send a certain amount of money selected by a customer from their own bank account, where the customer’s bank (entity) acts as the payer to another bank called beneficiary.
It is possible that transfers are made within the same entity, this operation is defined as a transfer and the operation is carried out on the same day.
Keep in mind that depositing cash and taking it to your bank account is not considered a transfer.
There are several factors that distinguish the different types of transfers and these can be classified into: Geographical, Personal and Time frames.
Bank transfers: geographic factors
Depending on where we want to make the transfer, there are three types:
– National (domestic) transfers: the originator and the beneficiary are located in our country. If you want it to be paid on the same business day, check with your entity to find out what the deadline time to make the transfer is. If you do the operation after that time, the payment will already be effective the next business day.
– International transfers: in this case, the originator and the beneficiary no longer coincide in the same country.
– Transfers to countries with conflicts: these have problems both in terms of terms and costs. Furthermore, there is no certainty that our transactions will be carried out efficiently.
Another type of geographic factor that can influence the type of transfer depends on where you reside. Depending on your country of residence, you can find these transfer services (I have only given two examples but there are more types):
– ACH (Automated Clearing House) transfer: basically used to carry out different financial operations in the United States, including transfers. This system operates with more than 30 banks, and you must inform each bank which is the deadline to carry out the operation so that it arrives on the same day that you carry it out. Otherwise, the transfer will arrive the next business day. If you want to do it faster then you should inform yourself about the Fedwire system.
– SEPA transfer (Single Euro Payments Area): used to make bank transfers in the Euro area (the 28 of the EU plus Liechtenstein, Iceland, Norway, San Marino, Switzerland, Vatican City, Andorra and Monaco). Therefore, it is an interesting type of transfer to consider, since its greatest advantage is that in most places the cost is cheaper.
In the end it is as if you made a transaction at the national level in terms of costs. It is also fast, being able to arrive the same day or at most the next business day.